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Stock traders typically fall into two broad types. Most traders start out as a discretionary trader, mostly relying on a combination of intuition and knowledge to discover high-probability trades. A discretionary trader will follow a trading plan but really goes with their gut on whether or not to place the trade.
The other type of trader is a systems trader. A systems trader will set up absolute rules to follow and will follow them. This type of trading can lend itself to some trade automation by following “if, then” rules. With this type of trading there is no “gut” feeling it is all driven by rules.
Which type of trader are you? Please comment.